Tax Law in Madison, WI

Tax law refers to the regulations governing the calculating, filing, and paying of taxes. When handling tax law cases, attorneys may manage taxes at various levels, such as local, state, and federal. The practice of this type of law involves understanding, defending, and resolving issues related to payment or non-payment.

If you hire a qualified , Wisconsin professional to handle your business or personal taxes, you may feel protected from disputes. However, even a misplaced comma or added zero can cause the IRS to believe you owe more than you do. In some instances, accountants might also take deliberate actions that result in legal and financial repercussions.

The Madison Sales Tax Handbook fixes the tax rate for goods and services in Madison at 5.5%. This includes the 5% sales tax levied by the state of Wisconsin, and the 0.5% levied by Dane County. There are no special taxes collected in Madison.

Tax Law Topics to Understand

If you find yourself facing , Wisconsin taxation issues, understanding tax law and how it works can help. Most Americans have only basic knowledge of how the tax systems work, and with good reason. They are complex. Small business owners need to understand tax law and how it impacts their business. Here are some essential tax law topics to get you started.

IRS Audits

An IRS audit is a review of an experienced Madison, Wisconsin individual’s or an organization’s finances and accounts to ensure accuracy. The audit may also uncover discrepancies business owners were not aware existed.

These are just a few of the things the IRS looks for when conducting an audit:

• Does your lifestyle match your income?
• Are you passing off personal expenses as business expenses?
• Are you overstating any of your business expenses?
• Did you fail to report any business income or did you inflate that income?
• Do your payroll taxes match that of your employees?
• If your business handles a lot of cash,  are you diverting any of this into your own pocket?

If you are about to have your business audited, consider hiring a qualified Madison tax law attorney. They can help you to navigate the complex process ahead and offer advice as issues arise.

Tax Evasion

Tax evasion refers to any activity an individual or business in , Wisconsin engages in to reduce or avoid their tax liabilities. There are two types of tax evasion: evasion of assessment and evasion of payment.

Evasion of assessment means the taxpayer performed an action with the goal of defeating the assessment of a tax. The under-reporting of taxes is a common example of this. Evasion of payment means that you avoid paying the IRS by hiding money or assets that should become taxed. Here are some examples of tax evasion:

• Keeping a double set of books
• Overstating deductions
• Destroying financial records
• Concealing sources of income
• Filing a false return
• Making false invoices
• Holding property in another person’s name to avoid taxation

If you are found guilty of tax evasion in Madison, Wisconsin you can face hefty fines, prison time, or both.

Income Tax and Fraud

Income tax fraud is the willful attempt to evade or defraud the IRS and Madison tax laws. Tax fraud occurs when an individual or business does any of the following:

• Prepares and files a false tax return
• Willfully fails to pay taxes
• Intentionally fails to file an income tax return
• Intentionally fails to report income received
• Makes fraudulent or false claims on the tax return

The City of Madison imposes a penalty of up to 0.5% a month for income tax delinquency. This is in addition to the amount owed that is causing the delinquency. There is a grace period extended by the city to allow residents to avoid such penalties, but the payment must be received by the end of business, or else postmarked before the due date.

When Would You Need an Experienced Madison, Wisconsin Tax Law Attorney?

Facing Legal Issues Regarding Taxes

If you’re under investigation from the IRS or planning a lawsuit against, you will need a qualified , Wisconsin attorney who practices tax law. To illustrate, counsel can help collect the information you need and create a viable defense.

When Starting a Business

There’s more to starting a business in , Wisconsin than selling products or services. You also need to determine the business type and structure. This status, in turn, determines how the business and your earnings get taxed. Choosing the wrong business structure can cost you.

Wisconsin Business Incentives affirms that there is a flat tax rate of 7.9% on all income generated by businesses in Madison. However, certain businesses such as religious organizations or non profit organizations are exempted from these taxes. Furthermore, many cities impose franchise taxes or privilege taxes on businesses, but luckily there is no such tax in Madison.

If You Have a Taxable Estate

If your estate is worth more than $11.58 million, or $23.16 million if you’re married, your estate might get taxed up to 40% for surpassing that threshold. No one wants a huge portion of their estate going to the IRS instead of their heirs. This is why wealthy people involve tax lawyers in their estate planning process.

According to the State Bar of Wisconsin, there are no estate taxes facing residents of Madison. Still, you may find yourself facing federal estate taxes. If this is the case, your best option may be to contact an experienced Madison attorney to help you fight to keep your assets.

Work With an Experienced Tax Law Lawyer In Madison, Wisconsin

Facing issues related to tax law can feel overwhelming. No one wants to go head-to-head with the IRS. Experienced , Wisconsin tax law lawyers have the expertise you need. From conducting audits to defending you in court.  We can even help you connect with an attorney across Wisconsin state lines.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!